In a potential transformative deal for the U.S. casino industry, the Adelson Family has held advanced negotiations with Mark Cuban on purchasing a considerable ownership stake in the NBA’s Dallas Mavericks, multiple outlets reported on Tuesday night.

The news broke hours after the family disclosed that it is selling approximately $2 billion in stock in Las Vegas Sands Corp. (LVS) to fund the purchase of a “majority interest in a professional sports franchise,” according to a filing with the U.S. Securities and Exchange Commission. Veteran NBA reporter Marc Stein later reported that the franchise in question is the Mavericks.

Cuban would remain governor of the Dallas Mavericks’ franchise and remain in control of all basketball decisionmaking for the franchise, ESPN.com reported, according to unnamed sources.

Since the 2018 PASPA decision, the colorful NBA owner has been one of the most ardent proponents of the expansion of legal sports wagering nationwide. At a Sports Business Journal conference last November, Cuban described sports betting as the single largest growth engine for the sports industry over the next decade.

If consummated, the purchase of a stake in the Mavs will likely bring considerable implications for the growth of the Texas casino industry, according the several gambling industry insiders who spoke with US Bets on Tuesday night.

A Mavs arena inside a Texas casino?

By sheer aesthetics, American Airlines Center, the Mavericks’ home arena, ranks among the top venues in the NBA to catch a game. Located in the heart of the city’s urban commercial area, the arena’s brick exterior is replete with large, sweeping arches. But the arena is more than two decades old, built in 2001, months after Cuban purchased a majority stake in the franchise.

Recall that Cuban has dropped hints over the last year on his ambitions to open a new arena as part of a larger casino project. Cuban has not been close to the vest on the identity of the potential partner, either, even mentioning LVS by name.

“My goal, and we’d partner with Las Vegas Sands, is when we build a new arena, it’ll be in the middle of a resort and casino,” Cuban told The Dallas Morning News last December. “That’s the mission.”

Mark Cuban has Vegas-like vision for Dallas, new Mavs arena if Texas OKs casino gambling https://t.co/kgz0K5IhfN

— Alfonso Straffon (@astraffon) December 18, 2022

Las Vegas Sands, founded by the late Sheldon Adelson, committed millions of dollars to Texas legislators and political action committees during the 2023 legislative session as part of a renewed attempt to expand gambling activities across the state. The casino conglomerate also enlisted an army of lobbyists over the last two sessions to push a casino initiative.

“By committing to invest likely $1 billion-plus into a new arena and creating lots of new jobs, I think that would create a lot of goodwill in the state and further their existing efforts that so far have been unsuccessful,” Bettor Capital founder Dave VanEgmond told US Bets.

Ultimately, the legislative session ended without the passage of legalized sports betting in Texas. The second the Lone Star State goes live with sports betting, it will become one of the five most populous states in the country to offer the activity.

“This new alignment certainly better positions both to benefit from expansion if and when it occurs,” added Chris Lynch, managing director, Gaming & Leisure Investment Banking, at Citizens Financial Group.

Nobody’s done this yet

While none of the NBA’s current 30 franchises play their home games inside a casino, the gambling industry has taken an increased role in commercial partnerships with the league in recent years. Weeks after the PASPA decision, MGM Resorts International became an official gaming partner of the NBA, forging one of the first deals between a sportsbook and a major U.S. sports league.

Is Adelson family buying the Mavs the most expensive and clever lobbying play in history? Eventually dangle a fully private funded new arena in a top 5 US city in exchange for the legalization of casino gaming in Texas and build an integrated casino resort within the same complex

— Dave VanEgmond (@Dave_VanEgmond) November 29, 2023

The Las Vegas Aces, the two-time defending WNBA champions, play their home games at Michelob Ultra Arena, a venue located inside Mandalay Bay Resort and Casino. The Aces became the second WNBA franchise to call a casino home, joining the Connecticut Sun, which host home games at the Mohegan Sun Arena, a 10,000-seat venue.

The opening of an NBA arena as part of a larger casino project, however, will ostensibly serve as a game-changer for integrations between gambling and professional sports. Any deal between Cuban and LVS requires NBA league approval.

“This changes the dynamics in sports betting and casinos in Texas significantly,” Global Market Advisors Director of Government Affairs Brendan Bussmann told US Bets. “You already had a proponent with Cuban, but this just adds onto it.”

A possible deal also has larger implications for Las Vegas, where the NBA will host its inaugural In-Season Tournament finals later this month.

“It also provides the potential for an NBA team in Las Vegas down the road when you already have an owner with significant ties to the market,” Bussmann added.

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